stocks
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Tipping has gone too far…
Tipping has gone out of hand. I was a server and a bartender. I’m not trying to take away your tips; in fact, if things get any worse, fewer people will go out to eat, restaurants will shut down, and no more tips ever. Slippery slope argument? Sure, but getting people on your side using…
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Are student loans worth it?
Are student loans a trap? Lenders are fully aware that most 18-year-olds, fresh out of high school, haven’t mastered the complexities of finance. They hand us loan documents filled with fine print and legal jargon, and they’re not exactly eager to sit down and explain how we could save thousands in interest payments. Instead, they…
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The Poverty Trap
It costs money to be poor. This is known as the “poverty trap,” a cycle where limited resources force choices that become more expensive over time. An apt example, called the Boots Theory of Socioeconomic Unfairness, was popularized by British author Terry Pratchett in his Discworld novels. Pratchett’s character Captain Samuel Vimes observes that a…
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Shunsaku Sagami is a M&A Genius
Shunsaku Sagami, Japan’s youngest billionaire, is an entrepreneur and innovator in the world of mergers and acquisitions (M&A), pioneering a unique approach to succession planning. Sagami’s strategy addresses a key demographic challenge often referred to as the “silver tsunami”—the retirement wave of aging business owners worldwide. His M&A Research Institute steps in where others may…
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Navinder Singh Sarao’s Flash Crash
On May 6, 2010, the U.S. stock market faced one of the most shocking and swift losses in its history. Within minutes, the Dow Jones Industrial Average plunged nearly 1,000 points, erasing roughly $1 trillion in value before rebounding almost as quickly. This incident, known as the “Flash Crash,” rattled investors and exposed vulnerabilities within…
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Efficient Markets and Other Hypotheses
The stock market can somehow see the future. At 11:38 a.m. on January 28, 1986, the space shuttle Challenger launched, and about two minutes later… It took more than five months to conclude that the explosion was caused by the shuttle’s O-rings on the right solid fuel booster rocket, which was attributed to a company,…
adaptive market hypothesis, Andrew Lo, behavioral economics, Challenger explosion, efficient market hypothesis, EMH, Eugene Fama, finance, financial theory, index funds, investing, investor behavior, market anomalies, market bubbles, market information, market rationality, Morton Thiokol, passive investing, personal-finance, stock market, stock market efficiency, stock pricing, stocks, value investing -
What is the stock market?
The stock market originated in the 17th century, allowing individuals to fund expeditions in exchange for profits. It has experienced booms and busts but remains crucial for financing businesses and creating wealth. Stocks represent ownership in a company, offering profit shares and voting rights. They can be private or public and are regulated by the…
Body of Knowledge 